Sales Fall by 31.8% (February) and Prices on the Coast by 34.9%

Property sales and property prices keep dropping in Spain. According to the National Institute of Statistics, the number of sales dropped by 31.8% in February 2012 (30.745 properties were sold) compared with February 2011.

According to the Spanish property index firm TINSA, the average price in the Spanish property market dropped by 11.5% in March 2012 compared with the same month in 2011. The last TINSA report also highlights that property prices in the Mediterranean Coast have fallen by 34.9% since the “bubble burst”. The main cities experienced a fall of 12.6% in the last year, having a total average drop of 30.8% since 2007.

Dramatic Spanish prices fall in 2011

Property prices have been falling since Q2/2008. According to TINSA, the average drop of prices in Spanish property in 2011 was: 4.1% (Q1), 6.8% (Q2), 7.4% (Q3) and 11.2% (Q4)

CONCLUSION: If we thought that 2011 was the worst year in terms of sales and price drops, 2012 does not seem to be better after the home sales collapse in February 2012. It looks like the year of the buyers is definitely 2012. We hope so and we look forward to seeing an improvement… but you never know where the end of the tunnel is.